he met the Secretary of State on June 12 and

although our Embassy in Peking are meeting some

difficulty in the administration of the student

exchange programme, there is so far no evidence

that the incident has affected our bilateral

relations in general.

4.

Now that the risk of publicity has receded

there is indeed much to be said for telling the

Chinese that we are willing to return illegal

immigrants. We should discuss with the Governor

the tactics which he would wish to adopt and then

send instructions to Hong Kong to open discussions

with the Chinese.

14 June 1974

Far Eastern Department

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